By Armando Duke

(Micro Cap News) Houston - Investors sold down shares of biotech Novelos Therapeutics (Otcbb: NVLT) Friday after the company's cancer drug trials where reported a bust.  Shares of the micro cap stock closed down 13% on heavy trading volume after having lost more-than 80% on Wednesday when news of the failed Phase 3 trial was released.

Novelos Therapeutics shares dropped nearly 4 cents at the close Friday, reaching a new 52-week low on volume of over 8 million shares after it was reported earlier this week that the company's "primary endpoint of improvement in overall survival was not met in Novelos’ pivotal Phase 3 trial in advanced non-small cell lung cancer (NSCLC) studying its lead product, NOV-002, in combination with first-line chemotherapy."

While the disappointing Phase 3 study results where disclosed on Wednesday, TheStreet.com had a field day covering the news with rehashed headlines that only added to Novelos Therapeutics' woes.

Novelos CEO Harry Palim commented on the news Wednesday saying, "We're very disappointed that our Phase 3 lung cancer trial did not meet the primary survival endpoint."

"In retrospect, it appears our simulations were inaccurate," stated Palim.

Shares of Novelus Therapeutics lost more than 80 percent Wednesday following the initial announcement.

The Street's By Adam Feuerstein critized Palmin for earlier comments made by the NVLT executive in December.

"That's an interesting concession for Palmin to make now because last December, he was claiming that the NOV-002 study took longer to complete than expected. This suggested to him that patients treated with NOV-002 were living longer and that the study would be a success," wrote Feuersten.

Note: Micro Cap News is a newly-formed partnership of online news publishers through the World City Press Syndicate.  Micro cap news articles are appearing on US news network AXcess News in advance of the launch of the beta news website.  Armando Duke is an AXcess news staff reporter.